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Question - A & B Company allocates factory overhead using a single plantwide overhead rate based on machine hours. At the beginning of the year, the company expects to incur $25,500 of overhead costs for 1,000 machine hours. Machine hours for Product S production total 490, while Product L requires 400 machine hours during the year.
Required -
a. Compute the plantwide factory overhead rate.
b. Determine the factory overhead allocated to each product line.
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